The New Mexico Supreme Court is considering a rule change to civil debt collection proceedings that would require debt collectors to provide more thorough documentation in the lawsuits against debtors.

The proposed Rule 30 would require collectors to provide in their lawsuits the name of the original creditor, the last four digits of the original account number, the date of default or charge-off, an itemization of interest, penalties and principal and more.

The proposed change was filed by the New Mexico Attorney General’s Office and it has pleased supporters and riled opponents.

Supporters say it levels the playing field for debtors and gives them information that’s necessary, but that is often lacking in debt-collection lawsuits, to be able to defend themselves or challenge the debt.

Opponents say it will make it more difficult to file a lawsuit to collect a consumer debt and discourage attempts to do so.

Public comment on the proposed change ended April 30, and there is no time frame for the court to approve or disapprove it, a Supreme Court spokesperson said.

“It requires that the original contract be attached [to the lawsuit] and information that shows a good-faith basis for the suit and allows the person who has been sued to defend themselves,” said Karen Meyers, director of the Consumer Protection Division of the New Mexico AG’s Office.

“In many instances you have collectors filing lawsuits based on insufficient evidence, filing suits when they don’t have a good-faith basis for the claim, and failing to notify consumers.”

In 2013, 40 percent of debt collection cases in New Mexico resulted in default judgments, meaning the defendant didn’t, or wasn’t able to respond to the lawsuit, Meyers said. “That’s the problem we are trying to improve,” she added.

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